Pimco’s total return fund suffers huge outflow amid bond turmoil

THE CARNAGE in the bond market in the past two months has reduced the assets of the Pimco Total Return Fund, the world’s largest bond fund, by 8.5 per cent, Morningstar data showed yesterday.

In June, investors pulled $9.6bn from Bill Gross’s flagship fund at Pacific Investment Management Co (Pimco), the largest single month of outflows at the fund since Morningstar records began in 1993, the investment research firm said.

The outflows came after investors pulled $1.3bn from the fund in May, which marked the first outflows since December 2011.

The fund’s assets now stand at roughly $268bn, down from a peak of $292.9bn in April, Morningstar said. The Pimco Total Return ETF, meanwhile, had outflows of $511.5m in June, its biggest outflows since its inception in February 2012 and following its first-ever monthly outflow of $107.8m in May.